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Compensation for Jamie Dimon Reduced by JPMorgan Chase & Co Board of Directors
The annual bonus for Jamie Dimon has been cut in half by JPMorgan Chase & Co’s board of directors, who cited the company’s $6.2 billion “London Whale” trading loss, according to Reuters.
“As chief executive officer, Mr. Dimon bears ultimate responsibility for the failures that led to the losses in the Chief Investment Office,” the bank said in a filing on Wednesday with the Securities and Exchange Commission.
In 2012, Dimon made $11.5 million, according to the filing from the company. His compensation consisted of $1.5 million and a bonus of $10 million. Dimon received $23 million in 2011, with $21.5 million of it a bonus.
Dimon said that he respects the decision of the board.
Dimon told analysts during a conference call that the company is planning to reduce its share buybacks in 2013 in order to increase capital so the company can meet international standards by the end of 2013.
“We continued to see favorable credit conditions across our wholesale loan portfolios and strong credit performance in our credit card portfolio,” Dimon said in a statement.
Glenn Schorr, an analyst with Nomura, said, “All in, we think it’s a good quarter for JPM, and underscores their solid earnings power. Solid earnings progression, capital build & return and reasonable valuation should make ’13 another good year in the stock.”